Scotiabank strategists are forecasting additional upside for the Canadian Dollar against the US Dollar despite escalating trade friction between Washington and Ottawa. Shaun Osborne and Eric Theoret note the loonie is holding steady even as renewed bilateral tensions and targeted US import restrictions threaten cross-border commerce. The strategists point to strengthening Canadian economic fundamentals as the primary driver behind the currency’s resilience.
Scotiabank has revised its fair value calculation for USD/CAD lower to approximately 1.3736, suggesting the greenback remains overvalued against its northern neighbor at current levels. This technical adjustment implies room for further CAD appreciation in the near term. The assessment comes as currency markets navigate heightened geopolitical uncertainty surrounding North American trade relations.
Traders should monitor whether the loonie can sustain momentum if trade disputes intensify, though improved domestic data appears to be offsetting external headwinds for now.
FXnCO Insight
CAD longs may find opportunity on dips toward the 1.3736 fair value target as fundamentals trump short-term trade noise.
Source: FXStreet